Oil and natural gas: oil price in retreat since Tuesday

• The oil price rose to the $80.16 level yesterday, forming a new weekly high
• During this morning’s Asian trading session, the price of natural gas hovered at the $2.22 level

Oil chart analysis

The oil price rose to the $80.16 level yesterday, forming a new weekly high. We didn’t have the strength to go further above, and a pullback to the $78.00 level followed. During this morning’s Asian session, the price tried to return to the bullish side. The success was partial, up to $79.00. We then paused there and initiated a pullback to the $78.00 level. The price of oil is trying to find new support here and stop further retreat.

Potential lower targets are $77.50 and $77.00 levels. The EMA 200 moving average could stop the decline at the $77.00 level. For a bullish option, we need a positive consolidation and a jump up to $79.00 again. Then, we need to hold ourselves there before we start the recovery. Potential higher targets are $79.50 and $80.00 levels.

Natural gas chart analysis

During this morning’s Asian trading session, the price of natural gas hovered at the $2.22 level. Now, in the EU session, nothing has changed on the chart, and we expect higher volatility in the US session during the news. A push to $2.28 could trigger a bullish consolidation and further recovery in gas prices. Potential higher targets are $2.30 and $2.32 levels.

For a bearish option, we need a pullback in the price of natural gas below the $2.22 level. With that step, we fall below the weekly open price to the negative side. This will strengthen the bearish momentum to continue the retreat to lower levels. Potential lower targets are $2.20 and $2.18 levels. The EMA 200 moving average in the $2.18 zone is additional support for natural gas prices.